Building Compliance in Commercial Leases

You might think that the building you're going to lease is "up to
code", or if it's not then it's the landlords problem. Don't be so sure.
It's not uncommon for landlords to include a "Compliance with Laws"
clause in your lease agreement which can create some real headaches for
you.

When negotiating your commercial lease, you are going to want to look
into the building compliance terms and ensure you won't be on the hook
for any future compliance expenses.

One common example of this kind of issue is complying with the
Americans with Disabilities Act (ADA), which governs building access to
people in wheelchairs or who are otherwise disabled and need special
building provisions. ADA holds liable BOTH the landlord and tenant of a
commercial property for maintaining access to disabled persons.

Additionally, you are going to want to investigate any potential
environmental issues with your commercial space and make sure your lease
agreement include favorable terms for you. It's not uncommon for
commercial tenants to be held entirely liable for any expense resulting
from pollution that surfaces during your tenancy.

The landlord’s lease may include an innocuous-sounding clause entitled “Compliance with Laws.” Contrary to what you might think, this does not mean that you are simply being asked to be a law-abiding business-person.

If your business serves members of the public, or you have 15 or more employees, the federal Americans With Disabilities Act (ADA) makes both you and your landlord responsible for assuring that the premises are accessible to disabled persons.

For some businesses, especially those renting industrial space in a building where polluting substances such as solvents may have been used, you’ll need to do some additional work, such as arranging an environmental inspection, before you sign a lease.